Colliers Q3 2024 Canadian Hotel Investment Report

Canadian hotel investment volume reached approximately $1.65 billion through the third quarter, up more than 20% year-over-year, indicative of continued strength and optimism in the Canadian hotel market

Following strong transaction activity in the first half of 2024, hotel volume moderated in Q3 to approximately $280 million, driven largely by the sale of the Residence Inn Calgary Beltline. Strong operating performance and ample capital availability, both in equity and debt, are driving market activity. Based on the current transaction pipeline, Colliers expects year-end volume to range between $1.9 and $2.0 billion.

Hotel valuations remain robust across the country, with normalized price per key metrics averaging $160,000, down 6% year-over-year; however, pacing 23% ahead of levels in 2019 ($130,000 per key). Interestingly, national revenue per available room (RevPAR) metrics have also risen by roughly 26% over the same period, reinforcing the impact of improved operating fundamentals on asset valuation.

Download the latest INNvestment Canada Hotel Report for preliminary transaction highlights as well as an update on lodging performance and tourism trends.